-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PSqc2L2B93fDT3Ayu3/uhpA/IP9klloaAnG7AxSe9MW9dRj4cqpmWl7ByNKy6rF5 iT+VbvQtJXswhwHIQtylRg== /in/edgar/work/0000055458-00-500010/0000055458-00-500010.txt : 20001027 0000055458-00-500010.hdr.sgml : 20001027 ACCESSION NUMBER: 0000055458-00-500010 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20001025 ITEM INFORMATION: FILED AS OF DATE: 20001026 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KERR MCGEE CORP CENTRAL INDEX KEY: 0000055458 STANDARD INDUSTRIAL CLASSIFICATION: [1311 ] IRS NUMBER: 730311467 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-03939 FILM NUMBER: 746286 BUSINESS ADDRESS: STREET 1: KERR MCGEE CTR STREET 2: 123 ROBERT S KERR CITY: OKLAHOMA CITY STATE: OK ZIP: 73125 BUSINESS PHONE: 4052701313 MAIL ADDRESS: STREET 1: P O BOX 25861 CITY: OKLAHOMA CITY STATE: OK ZIP: 73125 FORMER COMPANY: FORMER CONFORMED NAME: KERR MCGEE OIL INDUSTRIES INC DATE OF NAME CHANGE: 19671227 8-K 1 body8k.txt CURRENT REPORT SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 October 25, 2000 -------------------------------------------------- (Date of Report - Date of earliest event reported) KERR-McGEE CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) Delaware 1-3939 73-0311467 --------------- ------------------------ -------------------- (State of (Commission File Number) (IRS Employer (Incorporation) (Identification No.) Kerr-McGee Center Oklahoma City, Oklahoma 73125 ---------------------------------------- ---------- (Address of principal executive offices) (Zip Code) (405) 270-1313 ------------------------------- (Registrant's telephone number) Item 5. Other Events On October 25, 2000, Kerr-McGee Corporation issued a press release reporting its third-quarter 2000 financial and operating results. The press release is attached hereto as an exhibit and is incorporated by reference herein. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits (c) Exhibits 99.1 Press Release dated October 25, 2000. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. KERR-MCGEE CORPORATION By: (Deborah A. Kitchens) ----------------------------- Deborah A. Kitchens Vice President and Controller Dated: October 26, 2000 EX-99 2 exindex.txt EXHIBIT INDEX EXHIBIT INDEX Exhibit No. Description ----------- ------------------------------------- 99.1 Press Release dated October 25, 2000. EX-99.1 3 exhibit99b.txt PRESS RELEASE Exhibit 99.1 Kerr-McGee's Third Quarter Earnings Set Company Record ------------------------------------------------------ OKLAHOMA CITY (Oct. 25, 2000) -- Kerr-McGee Corp. (NYSE: KMG) reports a record $266 million ($2.58 per diluted share) of net income before special items for the 2000 third quarter, more than double the $104 million ($1.20 per share) in the same 1999 quarter. This represents the eighth consecutive quarter of increases. Including after-tax special charges relating to transition costs for acquisitions, net income was $265 million ($2.57 per share), up from $98 million ($1.13 per share) a year ago. For the nine months ended Sept. 30, net income excluding special items was $664 million ($6.63 per share), compared with $166 million ($1.91 per share) of net income excluding special items and before accounting changes in the same 1999 period. Including after-tax special items of $104 million, net income was $560 million ($5.62 per share) for the first nine months of 2000 and compares with $32 million (37 cents per share) in 1999. "Record operating profit in both of our core businesses -- oil and gas exploration and production and titanium dioxide pigment -- provided the foundation for yet another increase in quarterly earnings," said Luke R. Corbett, Kerr-McGee chairman and chief executive officer. "We generated substantial cash flow during the quarter and repaid more than $250 million in debt, reducing net debt as a percent of total capitalization to 50%. In addition, continued success with the drill bit has resulted in development approval for our 100%-owned Leadon field in the North Sea. The development of Leadon, along with developments underway at the North Sea Skene field and the Nansen and Boomvang fields in the deepwater Gulf of Mexico, provides the base for future production growth." Third-quarter operating profit was $461 million compared with $241 million in the 1999 quarter. Exploration and production operating profit rose to $406 million, almost double the $211 million in the year-ago quarter. Sharp increases in both crude oil and natural gas prices were the primary reason for the increase. The price increases were partially offset by slightly lower sales volumes of crude oil and natural gas, higher operating expenses and production taxes, and higher expenses for the company's expanding exploration program. Chemical's operating profit was $56 million, up $26 million from the 1999 quarter. The primary reason for the increase was a 62% growth in titanium dioxide pigment sales volume from the 1999 quarter as a result of the full-quarter impact of the company's plant acquisitions in Savannah, Ga., and Botlek, Netherlands, and additional production from debottlenecking at the company's flagship facility in Hamilton, Miss. Lower unit costs at each of the company's pigment plants also boosted earnings, and average pigment sales realizations were up 3% from the prior-year quarter. Third-quarter nonoperating items include foreign currency gains of $7 million, compared with foreign currency losses of $7 million in the 1999 quarter. Net interest expense declined to $44 million, reflecting the company's decreased debt levels. Daily oil production averaged 201,000 barrels, slightly less than the 203,100 barrels in the prior-year quarter. Oil realizations averaged $29.04 per barrel, an increase of $9.47 per barrel from the 1999 quarter. Daily natural gas sales averaged 527 million cubic feet, down 7% from the prior-year quarter. The average price of $4.13 per thousand cubic feet was $1.49 higher than the 1999 quarter. Sales for the third quarter were $1.1 billion, up 45% from $753 million a year ago. For the nine months ended Sept. 30, sales were $3 billion, up from $1.9 billion in the 1999 period. Cash capital expenditures for the third quarter were $202 million, compared with $113 million in the previous year's third quarter. For the first nine months, cash capital expenditures, excluding acquisitions, were $457 million, compared with $388 million in the 1999 period. Kerr-McGee will conduct a conference call today at 10 a.m. CDT to discuss the results of operations for the third quarter and expectations for the future. Interested parties may listen to the call via Kerr-McGee's website at www.kerr-mcgee.com or by calling 212-896-6011. Kerr-McGee is an Oklahoma City-based energy and inorganic chemical company with worldwide operations and $7.3 billion in assets. (Statements in this news release regarding the company or management's intentions, beliefs or expectations are "forward-looking statements" within the meaning of the Securities Litigation Reform Act. Future results and developments discussed in these statements may be affected by numerous factors and risks such as the accuracy of the assumptions that underlie the statements, the success of the oil and gas exploration and production program, drilling risks, the market value of Kerr-McGee's products, uncertainties in interpreting engineering data, demand for consumer products for which Kerr-McGee's businesses supply raw materials, general economic conditions, and other factors and risks discussed in the company's SEC filings. Actual results and developments may differ materially from those expressed or implied in this news release.) # # # CONTACT: Debbie Schramm (405) 270-2877 KERR-McGEE CORPORATION AND SUBSIDIARY COMPANIES (Unaudited)
Third Quarter Ended Nine Months Ended September 30, September 30, --------------------------- ----------------------------- (Millions of dollars, except 2000 1999 2000 1999 per share amounts) ------------- ----------- ------------- ------------- Consolidated Statement of Income - -------------------------------- Sales $ 1,089.3 $ 752.5 $ 2,959.6 $ 1,895.6 ------------- ----------- ------------- ------------- Costs and Expenses - Costs and operating expenses 348.8 279.5 973.2 773.0 General and administrative expenses 46.4 53.4 153.9 168.6 Depreciation and depletion 171.5 159.2 510.2 447.5 Exploration, including dry holes and amortization of undeveloped leases 49.1 24.7 137.9 94.1 Taxes, other than income taxes 30.9 21.9 89.3 54.5 Provision for environmental remediation and restoration of former plant sites, net of reimbursements - - 90.0 - Purchased in-process research and development - - 32.5 - Merger costs - - - 155.1 Interest and debt expense 49.1 50.4 162.4 140.9 ------------- ----------- ------------- ------------- Total Costs and Expenses 695.8 589.1 2,149.4 1,833.7 ------------- ----------- ------------- ------------- 393.5 163.4 810.2 61.9 Other Income 11.6 (1.9) 53.7 26.1 ------------- ----------- ------------- ------------- Income before Income Taxes 405.1 161.5 863.9 88.0 Taxes on Income (140.5) (63.8) (304.2) (51.5) ------------- ----------- ------------- ------------- Income before Change in Accounting Principle 264.6 97.7 559.7 36.5 Cumulative Effect of Change in Accounting Principle, net of taxes - - - (4.1) ------------- ----------- ------------- ------------- Net Income $ 264.6 $ 97.7 $ 559.7 $ 32.4 ============= =========== ============= ============= Net Income per Common Share - Basic - Income before accounting change excluding special items $ 2.83 $ 1.20 $ 7.13 $ 1.91 Income before accounting change 2.81 1.13 6.01 0.42 Accounting change - - - (0.05) Net income 2.81 1.13 6.01 0.37 Diluted - Income before accounting change excluding special items 2.58 1.20 6.63 1.91 Income before accounting change 2.57 1.13 5.62 0.42 Accounting change - - - (0.05) Net income $ 2.57 $ 1.13 $ 5.62 $ 0.37 Thousands of Common Shares Outstanding - End of period 94,328 86,463 Average 94,263 86,431 93,058 86,394 Average - including dilution 105,995 86,624 103,269 86,444 Foreign Currency Gains (Losses) before Taxes $ 7.3 $ (6.9) $ 35.9 $ 6.3 Selected Balance Sheet Information - ---------------------------------- Cash 174.8 184.4 Current Assets 1,299.3 1,096.7 Total Assets 7,321.0 5,873.7 Current Liabilities 1,221.9 826.8 Total Debt 2,579.0 2,602.6 Stockholders' Equity 2,356.6 1,444.2 Selected Cash Flow Information - ------------------------------ Cash Provided by Operating Activities 565.4 258.3 1,237.1 333.1 Depreciation, Depletion and Amortization 183.7 168.5 548.4 478.4 Dividends Paid 42.3 38.9 123.6 99.5 Cash Capital Expenditures (including cash dry hole expense) - Exploration and production 168.5 92.2 389.4 321.3 Chemicals - Pigment 27.4 16.8 51.6 54.5 Chemicals - Other 5.4 2.3 11.3 7.5 ------------- ----------- ------------- ------------- 201.3 111.3 452.3 383.3 All other 0.9 2.0 4.2 4.3 ------------- ----------- ------------- ------------- Total $ 202.2 $ 113.3 $ 456.5 $ 387.6 ============= =========== ============= =============
KERR-McGEE CORPORATION AND SUBSIDIARY COMPANIES (Unaudited)
Third Quarter Ended Nine Months Ended September 30, September 30, --------------------------- ----------------------------- (Millions of dollars) 2000 1999 2000 1999 ------------- ----------- ------------- ------------- Segment Information Excluding Special Items - ------------------------------------------- Sales Exploration and production $ 745.4 $ 510.2 $ 2,047.7 $ 1,215.8 Chemicals - Pigment 286.2 184.3 747.0 509.9 Chemicals - Other 57.5 58.0 164.6 169.7 ------------- ----------- ------------- ------------- 1,089.1 752.5 2,959.3 1,895.4 All other 0.2 - 0.3 0.2 ------------- ----------- ------------- ------------- Total $ 1,089.3 $ 752.5 $ 2,959.6 $ 1,895.6 ============= =========== ============= ============= Operating Profit Exploration and production - Domestic $ 253.2 $ 129.6 $ 604.3 $ 246.5 North Sea 176.2 99.7 500.1 180.3 Other International 25.4 6.6 57.5 12.8 ------------- ----------- ------------- ------------- Total Production Operations 454.8 235.9 1,161.9 439.6 Exploration Expense (49.1) (24.6) (137.9) (93.8) ------------- ----------- ------------- ------------- 405.7 211.3 1,024.0 345.8 ------------- ----------- ------------- ------------- Chemicals - Pigment 50.0 25.1 125.8 81.8 Other 5.7 4.5 13.2 10.6 ------------- ----------- ------------- ------------- 55.7 29.6 139.0 92.4 ------------- ----------- ------------- ------------- Total 461.4 240.9 1,163.0 438.2 Net Interest Expense (44.2) (47.5) (141.7) (132.4) Income from Equity Affiliates 6.3 4.1 19.8 11.2 Other Expense (15.7) (26.0) (19.9) (45.5) Taxes on Income (141.4) (67.2) (357.4) (106.0) ------------- ----------- ------------- ------------- Income before Special Items and Change in Accounting Principle 266.4 104.3 663.8 165.5 Special Items, net of taxes (1.8) (6.6) (104.1) (129.0) Cumulative Effect of Change in Accounting Principle, net of taxes - - - (4.1) ------------- ----------- ------------- ------------- Net Income $ 264.6 $ 97.7 $ 559.7 $ 32.4 ============= =========== ============= ============= Net Operating Profit Exploration and production $ 258.6 $ 134.5 $ 655.2 $ 216.8 Chemicals - Pigment 33.0 16.4 78.7 52.4 Chemicals - Other 3.7 2.9 8.6 6.8 ------------- ----------- ------------- ------------- Total 295.3 153.8 742.5 276.0 Net Interest Expense (27.0) (32.4) (93.2) (88.9) Income from Equity Affiliates 4.1 2.6 13.0 7.3 Other Income (Expense) (6.0) (19.7) 1.5 (28.9) Special Items, net of taxes (1.8) (6.6) (104.1) (129.0) Cumulative Effect of Change in Accounting Principle, net of taxes - - - (4.1) ------------- ----------- ------------- ------------- Net Income $ 264.6 $ 97.7 $ 559.7 $ 32.4 ============= =========== ============= ============= Selected Exploration and Production Information - ------------------------ Depreciation and depletion $ 142.8 $ 141.8 $ 437.1 $ 395.6 Dry hole expense 16.9 1.2 53.1 24.0 Production costs - Lease operating expense 95.7 86.2 288.5 242.1 Abandonment 9.3 10.7 28.7 31.4 Production taxes 23.5 10.1 66.2 19.6 ------------- ----------- ------------- ------------- Total $ 128.5 $ 107.0 $ 383.4 $ 293.1 ============= =========== ============= ============= Special Items, Net of Income Taxes - ---------------------------------- Environmental expenses related to former operations $ - $ - $ (58.5) $ - Purchased in-process research and development - - (32.5) - Costs related to plant closings and product line discontinuation - - (13.3) - Merger costs - - - (110.5) Other (1.8) (6.6) 0.2 (18.5) ------------- ----------- ------------- ------------- Total $ (1.8) $ (6.6) $ (104.1) $ (129.0) ============= =========== ============= =============
KERR-McGEE CORPORATION AND SUBSIDIARY COMPANIES (Unaudited)
Third Quarter Ended Nine Months Ended September 30, September 30, --------------------------- ----------------------------- 2000 1999 2000 1999 ------------- ----------- ------------- ------------- Crude oil & condensate production (thousands of bbls/day) Domestic - Offshore 57.1 63.4 57.4 58.4 Onshore 16.5 18.5 16.9 18.6 North Sea 111.6 106.7 117.8 104.4 Other International 15.8 14.5 14.8 15.5 ------------- ----------- ------------- ------------- Total 201.0 203.1 206.9 196.9 ============= =========== ============= ============= Average price of crude oil sold (per bbl) Domestic - Offshore $ 28.15 $ 18.21 $ 26.36 $ 14.31 Onshore 30.39 20.25 28.61 15.80 North Sea 29.73 20.51 27.47 15.92 Other International 26.02 16.03 25.10 12.55 Average $ 29.04 $ 19.57 $ 27.09 $ 15.28 Natural gas sold (MMCF/day) Domestic - Offshore 291 345 294 356 Onshore 173 171 173 167 North Sea 63 50 68 50 ------------- ----------- ------------- ------------- Total 527 566 535 573 ============= =========== ============= ============= Average price of natural gas sold (per MCF) Domestic - Offshore $ 4.38 $ 2.63 $ 3.51 $ 2.16 Onshore 4.46 2.69 3.68 2.17 North Sea 2.09 1.70 2.03 2.18 Average $ 4.13 $ 2.64 $ 3.38 $ 2.28
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